Better Business Bureau Warns of Increasing Prevalence of AI in Identity Theft

In 2025, AI-powered scams are set to escalate, posing a growing threat of identity theft and account takeovers.

Quick Takes

AI is facilitating more sophisticated identity theft scams.
The Better Business Bureau reported it has received over 16,000 complaints about identity and information scams since 2021.
Account takeovers and SIM swap fraud are on the rise.
Preventative measures from the BBB and FTC can help mitigate risks.

AI’s Role in Identity Theft

The use of artificial intelligence in identity theft scams is expected to continue increasing in 2024. The Better Business Bureau has reported over 16,000 identity theft and information scam complaints since 2021, highlighting the urgency of the issue. Scammers are reportedly leveraging AI to enhance the speed and sophistication of their attacks, making it harder for individuals to protect their personal information. These advancements allow criminals to bypass traditional security measures and expand their reach through automated processes.

Regarding identity scams, Julie Wheeler, the CEO of the BBB for western Virginia, said, “The terrifying part is with AI, it’s so much easier for these things to appear legitimate.”

Stolen data is often sold on the dark web, exacerbating the problem. The rise in data breaches has led to more personal information being available to scammers, increasing the likelihood of identity theft. As these malicious actors continue to exploit AI technology, the need for heightened awareness and stronger preventive measures becomes even more critical.

Better Business Bureau warns of raising AI scams https://t.co/7Oorm0XwFB

— WFXR News (@WFXRnews) April 16, 2025

Impact of Account Takeovers

Account takeovers have increased by 76% in recent years, with more than half of the cases involving mobile phone accounts. This alarming statistic reveals how prevalent these scams have become. Scammers use various methods to gain access to accounts, which are then used to solicit money or impersonate individuals to open credit cards and rent apartments. The rise in SIM swap fraud, which saw a staggering increase of 1,055%, further complicates the landscape.

Fraud prevention services have reported a continuous rise in identity theft and fraud, with AI playing a significant role. The sophistication of these scams underscores the importance of taking immediate action to safeguard personal information and limit exposure to such threats.

Protective Measures and Recommendations

To counteract the threat of AI-powered identity theft, organizations like the FTC and BBB recommend several preventative strategies. These include monitoring credit reports regularly, enabling multi-factor authentication, and securing internet connections to protect sensitive data. Resources are available for victims, including reporting tools and guides on how to manage the aftermath of identity theft. Monitoring personal information proactively also forms a crucial part of staying ahead of potential scammers.

Consumers are urged to maintain vigilance in monitoring their financial activities and credit standings. By visiting resources like the BBB Scam Studies homepage or utilizing credit freezes, individuals can further safeguard themselves. Additionally, reporting suspected cases to entities like the BBB, FTC, or FBI allows these scams to be documented and addressed effectively.